iShares Bitcoin Trust ETF (IBIT) Covered Calls

The iShares Bitcoin Trust is an exchange-traded fund that seeks to reflect the performance of the price of bitcoin. It provides investors with a regulated and accessible way to gain exposure to the world’s largest digital asset without the need to manage private keys or use cryptocurrency exchanges. The trust holds physical bitcoin in secure cold storage with a professional custodian, offering a liquid vehicle for incorporating digital assets into traditional brokerage accounts.

You can sell covered calls on iShares Bitcoin Trust ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for IBIT (prices last updated Thu 10:00 AM ET):

iShares Bitcoin Trust ETF (IBIT) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
37.65 +0.11 37.64 37.65 10.0M - 40
Covered Calls For iShares Bitcoin Trust ETF (IBIT)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 37.5 0.60 37.05 1.2% 219%
Mar 20 38 2.13 35.52 6.0% 73.0%
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iShares Bitcoin Trust is a spot bitcoin exchange-traded product sponsored by BlackRock. The trust is designed to provide investors with exposure to bitcoin by tracking the CME CF Bitcoin Reference Rate - New York Variant. By holding actual bitcoin in a secure, institutional-grade custodial environment, IBIT eliminates the technical and security hurdles associated with direct digital asset ownership, such as wallet management and cyber-security risks.

Core Business and Products

  1. Spot Bitcoin Custody: The trust’s primary asset is bitcoin held by a specialized digital asset custodian. The vast majority of the trust's holdings are kept in "cold storage," an offline security measure designed to protect the assets from unauthorized access and cyber-attacks.
  2. Institutional Infrastructure: Leveraging the scale of BlackRock, the trust utilizes a sophisticated network of authorized participants and market makers to ensure high liquidity and a tight tracking of the underlying spot price of bitcoin.
  3. Transparent Valuation: The trust provides daily transparency regarding its bitcoin holdings per share, allowing investors to verify the backing of their investment through traditional financial reporting and independent audits.

Competitive Landscape

The market for spot bitcoin products is highly competitive, with several major asset managers offering similar vehicles. IBIT competes directly with the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF. Other significant competitors in the space include the Grayscale Bitcoin Trust BTC and the ProShares Bitcoin Strategy ETF, which offers futures-based exposure. In the broader digital asset equity space, investors often compare the trust to Coinbase Global Inc, which serves as a primary custodian for many of these funds, and Strategy Inc (MicroStrategy), which maintains a large corporate bitcoin treasury.

Strategic Outlook and Innovation

The trust is focused on the continued integration of digital assets into the global financial ecosystem. A primary strategic priority is the expansion of the trust's role within diverse investment portfolios, moving from a speculative asset to a standard component of institutional asset allocation. Innovation in this sector is centered on the development of derivative markets, such as the introduction of listed options on the trust, which allow for more sophisticated risk management and income-generation strategies. Furthermore, the sponsor is focused on optimizing the efficiency of the "in-kind" and "cash" creation and redemption processes to maintain market leadership in liquidity. By providing a bridge between decentralized finance and traditional capital markets, the trust aims to remain the premier gateway for investors seeking to capitalize on the increasing institutional adoption and scarcity value of bitcoin.